Did you know that there is over $6 Trillion in 401(k) plans in America?

Did you also know that no two plans are alike?

It’s only natural to wonder how your 401(k) plan compares to others.

In this video, Curt shares average 401(k) balances, employer matching percentages, vesting schedules, contribution levels, investment options and costs, returns, and several other characteristics.

In this Video:
0:48 – 401(k) Intro
1:44 – Average 401(k) Balance
2:54 – Average 401(k) Employer Match
3:59 – Average 401(k) Employee Contribution
4:43 – Average 401(k) Vesting Schedule
5:30 – Average 401(k) Asset Allocation
5:59 – Average 401(k) Rate of Return
6:42 – Average 401(k) Custodian Fees
7:14 – Does the Average 401(k) Allow In-Service Distributions?
7:59 – Does the Average 401(k) Have a Roth Option?
8:56 – Does the Average 401(k) Offer Company Stock
9:43 – Wrap Up

The blog post that accompanies this video:
The section about Net Unrealized Appreciation is in the post. Once I write a focused post on NUA, I’ll come back and link it.

Other Related Videos:

Other Related Blog Posts from MartinMoney.com:
What is a 401(k) and How to Use One in 2023 –
Should I Have Both a Roth IRA and a 401(k)?
Do I Have to Report My Roth IRA on My Tax Return?
The Backdoor Roth IRA –

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Disclaimer: This video is for information and entertainment only. None of the contents should be considered legal, accounting, or other professional advice. You should reach out to a qualified professional before making your own financial decisions….(read more)

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How Does Your 401(k) Measure Up Against Other Plans?

Saving for retirement is a vital part of one’s financial journey, and a 401(k) is often the preferred option for many Americans. It allows individuals to contribute a portion of their income towards retirement while enjoying potential tax advantages. However, it’s essential to understand how your 401(k) plan measures up against other retirement plans to ensure you’re making the most of your savings.

One crucial factor to consider is the employer match. Some employers offer matching contributions where they match a percentage of the employee’s contributions. This can significantly boost your retirement savings. For example, if your employer matches 50% of your contributions up to 6% of your salary, it’s crucial to contribute at least 6% to receive the maximum match.

Another aspect to evaluate is the investment options available within your 401(k) plan. A good 401(k) plan offers a diverse range of investment choices, such as low-cost index funds, target-date funds, and possibly even individual stocks. Having a variety of investment options allows you to diversify your portfolio and potentially increase your returns.

Fees and expenses associated with your 401(k) plan are also critical to consider. These costs can eat into your returns significantly over time. Look out for high administrative fees or expense ratios on mutual funds. Comparing fees among different plans can help you identify if your plan offers a competitive fee structure.

When evaluating your 401(k) plan, it’s also essential to review the vesting schedule. The vesting schedule determines when you fully own your employer’s contributions. Some plans have a graded vesting schedule where your ownership increases gradually over a certain number of years. Others have a cliff vesting schedule, where you become fully vested after a specific period. Understanding the vesting schedule can be crucial if you decide to leave your current employer before becoming fully vested.

Furthermore, consider the overall plan design and extra features. Some 401(k) plans may allow for a Roth option, enabling you to contribute after-tax money in exchange for tax-free withdrawals in retirement. Additionally, features like auto-enrollment and auto-escalation can encourage consistent contributions and help you increase your savings rate over time.

Lastly, it’s essential to compare your 401(k) plan against other retirement savings vehicles, such as Traditional IRAs or Roth IRAs. Depending on your income level and eligibility, contributing to an IRA alongside or instead of your 401(k) might provide additional benefits like a wider range of investment options or tax advantages.

To ensure your 401(k) measures up against other plans, take the time to thoroughly review its features, compare fees, evaluate investment options, and consider other retirement account options. Consulting with a financial advisor can also be beneficial, as they can provide personalized advice based on your specific financial goals and circumstances.

Remember, your 401(k) can have a significant impact on your financial well-being in retirement. Make sure you’re maximizing its potential by understanding how it compares to other retirement plans and taking proactive steps to optimize your savings strategy.